China News - 8 September
International
China wants to ban clothes that “hurt the nation's feelings”. A law banning speech and dressing in a way “detrimental to the spirit of Chinese people” has been drafted and is sparking debate in China. If the law comes into force, people could be fined or even jailed. The proposal does not yet state what constitutes a violation. Kelly Ng. BBC News, 7 September
US’s McCarthy says China’s stance on Fukushima discharge is “unfair” and “false”. The US House of Representatives Speaker called China’s actions “unfair” and “false” during a visit to Tokyo on Thursday. Yukiko Toyoda and Sakura Murakami. Reuters, 7 September
China says 90 countries have confirmed attendance for the Belt and Road Initiative. The third Belt and Road Forum for International Cooperation will be held in Beijing in October, marking the 10th anniversary of the BRI. Several foreign leaders are expected to attend, including the Serbian and Argentinian presidents. Andrew Hayley and Bernard Orr. Reuters, 7 September
Top Chinese officials to join North Korea founding celebrations. Led by Vice Premier Liu Guozhong, a high-level delegation of Chinese officials will join celebrations in North Korea to mark the country’s 75th anniversary this weekend. Al Jazeera, 7 September
Australian PM to visit China soon as both sides hail progress. Australian Prime Minister Anthony Albanese said that Australia and China have made progress in returning to “unimpeded trade”. Albanese also said he hopes to visit China this year, being the first Australian leader to do so since 2016. Kirsty Needham. Reuters, 7 September
Economy & Tech
Joe Biden pushes for bigger World Bank to combat China’s rising influence. As Washington comes under pressure to fund the fight against climate change and offer a good alternative to China’s economic influence, Biden has started to push to secure international support to expand the World Bank’s lending capacity. James Politi, John Reed and Henry Foy. Financial Times, 8 September
China and Japan push back against dollar strength. Chinese and Japanese officials are pushing back against the strength of the US dollar as a rally by the greenbank threatens to drive the renminbi and the yen to historic lows. The PBC set the trading band for the renminbi unexpectedly high on Wednesday. Japan has issued a warning against the yen’s fall. Hudson Lockett, Kana Inagaki and Mary McDougall. Financial Times, 6 September
Global economic fears deepen as service sector dips in China and Europe. Share prices fell in Asia and the pound dropped to a 12 week low against the US dollar following new signs of weakness in China. This has triggered speculation that China’s post-lockdown recovery is running out of steam. Larry Elliott. The Guardian, 5 September
Apple shares fall after China reportedly bans iPhone use by government officials. Apple shares have fallen 3.6% on Wall Street stock indexes since the CCP announced their ban. China is one of Apple’s biggest markets, generating a fifth of its revenue. The Guardian, 7 September
China stirs hope in property market with latest stimulus plan. The measures introduced last week, including relaxing requirements for mortgage down payments and interest rates, are “the strongest measures to date when it comes to the property market, so it really shows that Beijing is putting some muscle behind its words”, according to HSBC chief Asia economist, Frederic Neumann. Joe Leahy and Nian Lui. Financial Times, 7 September
China’s exports tumble as pressure grows for economic support from Beijing. China’s exports fell 8.8% in August compared with 2022. Exporters have struggled with global inflation and global consumers cutting back on Chinese electronics purchases. Beijing has come under pressure to provide more support but have refrained from giving stimulus measures to revive growth. Joe Leahy. Financial Times, 7 September
Tencent declares AI “war” on Chinese rivals. Tencent unleashed its key generative AI technology on Thursday, declaring “a war of a hundred modules has begun” with about a dozen rivals fighting to be China’s national AI champion. Eleanor Olcott. Financial Times, 7 September
Opinion & long-reads
Of course Xi’s no-show has everything to do with the US. It is clear that Beijing is sending a message with Xi’s absence. China is letting it be known that it will not take US containment lying down. Terry Su. South China Morning Post, 7 September
Investors ponder the “Japanification” of China. The term has been used in the context of China for some time. It reduces a large suite of investor concerns into a more binary buy-sell problem: China could escape its woes in a couple of years, or it could face “lost decades” like Japan did through the 1990-2000s. Leo Lewis. Financial Times, 7 September
No other investor has a life story quite as unbelievable as Li Lu. Lu went from radical Tiananmen Square revolutionary, to seeking asylum in the US, to making his fortune betting on China. Eleanor Olcott. Financial Times, 7 September